United States 10-Year Bond Yield - AT RESISTANCE 🤨👎

6 мар. 2023 г.

Massive level of resistance has played out and Stocks could power higher as Treasury yields and dollar might ease further.

4,22% has been a Major Support/Resistance level (S/R as you can see on the chart) and the prices down have dropped even lower, below the psychological 4%

What does that mean?

When US government bond yields are on resistance, meaning they have reached a point where they are likely to reverse direction, it can have a significant impact on various aspects of the economy and financial markets.

One of the most immediate effects could be on the stock market. Higher bond yields could lead to a sell-off in equities as investors may shift their money from riskier assets to safer ones like bonds. This could result in a temporary decline in the stock market and a potential increase in market volatility.

The impact on the broader economy is more nuanced. Higher bond yields can lead to higher borrowing costs for businesses and consumers, which can slow down economic growth. However, if the bond yields are rising due to a strong economic outlook, it could be a sign of healthy economic expansion, which could offset the negative impact of higher borrowing costs.

The Federal Reserve's monetary policy could also be affected by rising bond yields. If the Fed believes that rising bond yields could lead to an economic slowdown, it may adjust its policy by lowering interest rates or increasing its asset purchases to keep borrowing costs low and support economic growth.

In summary, when US government bond yields are on resistance, it could have a significant impact on various aspects of the economy and financial markets. It could result in a temporary decline in the stock market, higher borrowing costs for businesses and consumers, and potential adjustments to the Federal Reserve's monetary policy.

What's next?

🆘 The Feds are lots of data to watch out for:

📌 Fed Chair Powell speaks on Tuesday/Wednesday
📌 JOLTs job data on Wednesday
📌 Fed Beige Book on Wednesday
📌 Fed’s Barr speaks on Thursday
📌 February jobs report on Friday
📌 Final week of Q4 earnings

Hopefully, this is a good sign to see a further rebound in the markets and a more dovish Federal Reserve.. unless they are aiming for chaos in which case they intend to raise rates over the 6%

One Love,

The FXPROFESSOR